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For the Canadian government, a number of negotiating objectives pose political challenges. Most notably, the US goal of unrestricted access to Canada’s domestic agricultural markets represents a direct threat to Canada’s dairy (and other) supply management programs. The US demand for Canada to allow entry of US firms in all sectors would require that Canada eliminate foreign investment restrictions in banking, telecommunications, and a number of cultural industries, among others. The US call for Canada to adopt US intellectual property protections would require the Canadian government to strengthen legal protections enjoyed by foreign manufacturers of branded pharmaceuticals, while the US government’s desire for unrestricted cross-border flows of digital information will, over time, threaten Canadian broadcasting regulations that directly and indirectly promote the production and distribution of Canadian entertainment programming.

National Association of Manufacturing’s Linday Dempsey: More Regulatory Complexity Won’t Increase US Competitiveness.

On rules of origin, NAM Vice President of International Economic Affairs Linda Dempsey says, “It already costs many manufacturers millions of dollars to comply with the rules that we already have. The notion that we are going to improve American competitiveness and increase good-paying jobs by increasing complexity, increasing red tape and making it more it expensive to manufacture in the United States is really something of significant concern.” Dempsey adds that there are “much better ways to create more manufacturing jobs than the Trump Administration’s idea of establishing a specific NAFTA requirement that a portion of each product be made in the United States.”

The Rules of Origin are little known to companies and executives not involved in manufacturing in Mexico. The United States has identified abuses of the Rules of Origin that have cost hundreds of thousands of U.S. Jobs. It is an area of ‘sharp focus’ for the U.S. negotiating team to tighten application of the Rules of Origin. The other effort is to develop requirements that higher percentages of components being used in the manufacture of products benefiting from duty free be implemented. The goal therein is to increase component manufacturing in North America as opposed to distant countries.

Canada will oppose any effort to change the investor-state dispute resolution system in the North American Free Trade Agreement, imperiling the Trump administration’s efforts to fundamentally change the trilateral trade deal.

U.S. Trade Representative Robert Lighthizer has proposed allowing the three member countries, the U.S., Mexico, and Canada, to voluntarily opt in to the dispute resolution system known as ISDS. The system has international panels of arbiters adjudicate complaints between businesses and foreign countries. Lighthizer instead has suggested having the nation’s own courts hearing the disputes. The proposal has roiled the talks, which began in Washington this month.

It may be a moot issue however, as a source in the Canadian government with knowledge of the negotiations told the Washington Examiner that the government would refuse any changes to the existing system.

In essence, Mexico appears to be calling Trump’s bluff, calculating that a NAFTA withdrawal would likely trigger a backlash in the United States — where agriculture and other key economic sectors benefit significantly from the accord.

Asked if Mexico would remain in talks if Trump initiated the lengthy process to withdraw from NAFTA, the foreign secretary responded with an unequivocal “no.”

The Tecma Group of Companies of El Paso, Texas and San Diego, California, entered the Maquiladora Industry in 1986, years before NAFTA was created. “We were successful prior to NAFTA and will continue to be successful in serving the needs of companies foreign to Mexico if NAFTA is scraped. We are attentive to NAFTA renegotiations but not concerned for those companies that wish to benefit from lower wage costs and near-shore commerce.” said Alan Russell, founder and CEO of the Tecma Group of Companies.

In readings across the internet a probable theme is revealed that shows the probability of NAFTA renegotiations resulting in an improved agreement that will help all three country participants. The reader is encouraged to review other articles on this subject in the Tecma Blog.

“The Tecma Group of Companies' services allow me to concentrate on making and selling wood pallets. I have Tecma handle all administrative functions, Mexican Customs, human resources, all permitting, as well as the legal aspects of manufacturing in Mexico. It’s a very good, complementary relationship. They provide me with a project manager, which means I don’t have to deal with a lot of individuals. I deal with one individual, who then deals with experts in all relevant disciplines on my behalf.”

“When we purchased the Dashmat product line, which is the product that we are manufacturing in Ciudad Juarez, we were able to establish a Mexico manufacturing plant with Tecma very quickly. They got us up and running very smoothly under their Mexico Shelter Manufacturing Partnership (MSMP). We like Tecma because it is a stable company that has been around for many years, and looks to be around for many more. Tecma appears to care about our Mexico business' success is very responsive to our needs.”

“Since we started, we have been able to maintain a competitive advantage over many of our competitors that have moved their manufacturing to China by reducing lead times to 4 weeks less than most of our competitors. This has given us the ability to compete on pricing against many of our competitors that have gone to China. We found that in our Juarez staff in Mexico we found a highly-trained workforce with strong background, and the capability to do mannequin manufacturing in Mexico.”

“More than a decade ago, Portage Electric Products Incorporated was faced with the reality that we were going to have to consider manufacturing in another country in order to maintain our competitiveness in the global marketplace. We chose Mexico, as we could be here literally within hours, should the need arise. We chose the Tecma Mexico Shelter Manufacturing Partnership (MSMP) because it provided virtually everything we needed to begin with and support an ongoing Mexico manufacturing operation.”

This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.